British universities demand more government support to deal with the financial crisis

The largest representative body of British universities has urgently appealed to the government to provide additional funds for the higher education sector, after Education Secretary Bridget Phillipson emphasized that there were no quick solutions for the impending financial crisis. Dame Sally Mapstone, President of Universities UK and Principal of the University of St Andrews, stated on Thursday that ministers could no longer ignore the necessity of investing in universities. The reason being, frozen tuition fees for a decade, leaving almost all higher education institutions in a financial bind. “Our message to the government is clear: our universities can and must be key partners in achieving the set objectives. We are ready to collaborate with you to drive growth, opportunities, and equity, but we need your investment and support,” she said at the annual UUK conference in Reading. This urgent call followed shortly after Phillipson’s statement that the government had no “immediate” plans to alleviate the financial problems of universities before the budget on October 30, while simultaneously promising to “consider all options.” The UUK, representing more than 170 universities, has repeatedly urged the government to raise the tuition fees for domestic students, frozen at £9,250 per year. Due to inflation, the real value of the fee is now only £5,924 relative to 2012-13, leading to lower per capita funding than before the fee increase to £9,000. Frozen fees, reduced government grants, and a significant decline in lucrative international postgraduate students due to an immigration halt by the previous conservative government have brought some universities to the brink of bankruptcy. Since July, Phillipson has assured international students that they are welcome in the United Kingdom. However, the government has not lifted the ban on postgraduates bringing family members, which contributed to the decline in numbers. Labour has called on the Office for Students, the regulator in England, to help universities in financial difficulty to restructure or merge in order to adapt to a more challenging long-term outlook after a decade of growth. Mapstone emphasized that universities appreciated the changing rhetoric and Labour’s promise to review the sector’s financial stability. However, this was not enough to ease fears as more than 50 institutions are currently cutting jobs or courses. “We must continue to highlight very clearly the extent and urgency of the challenge that so many of us face daily,” she added. Mapstone cited a report commissioned by UUK from the consultancy London Economics, estimating that universities annually generate more than £250 billion for the economy and offer the treasury a high return on investment. “Our universities generate over £14 in economic benefits for every £1 invested,” she stated, referencing the report. “This is about eight times higher than the average return of £1.80 for every £1 invested in other government projects between 2010 and 2022.”